Home Building Tips

[KYHUNTER14]

The wife and I are planning on building a house in the next few years. Just wondering if you all had any tips. I am sure that I will make some mistakes in the process, but I figure if I can learn from some of the mistakes others have made, I can keep them at a minimum. Lets hear em.

[grouseguy]

The wife and I are planning on building a house in the next few years. Just wondering if you all had any tips. I am sure that I will make some mistakes in the process, but I figure if I can learn from some of the mistakes others have made, I can keep them at a minimum. Lets hear em.

DON'T BUILD ... BUY!!!

I'm a banker in your back yard, and in this market, I tell my customers that they are foolish to consider building, when you can buy so much more house for the money.

I've heard all of the excuses:

... I can't find anything that I like.
... I want to build a certain type of home (usually log).
... there is nothing for sale in the area I want.
... my grandfather gave me this lot, so I want to build on it. (I hear this one a lot in this area, and it explains why you see so many $200K homes built on $500 lots)
... I've got a buddy that will help me build it and it won't cost so much.
... I think I can build it for less than $50/sq ft.
... etc. etc. etc.

Seriously, look around the Boyd County market ... you see many houses being built ... wonder why???

With the declining area population combined with the depressed economy ... There is a HUGE housing surplus in this area ... take advantage of that potential windfall and negotiate a good deal on an existing home, then take those savings to get into a 15 year mortgage instead of 30 years and build some serious equity for your future.

[barney]

Research all of the builders you know of, by checking quality of work, dependability and honesty. Hire the best you can find and pay him his price, then let him build your house while you shop for bargins on materials. You never save money by hiring a cut rate contractor!!;)

[predator]

DON'T BUILD ... BUY!!!

I'm a banker in your back yard, and in this market, I tell my customers that they are foolish to consider building, when you can buy so much more house for the money.

I've heard all of the excuses:

... I can't find anything that I like.
... I want to build a certain type of home (usually log).
... there is nothing for sale in the area I want.
... my grandfather gave me this lot, so I want to build on it. (I hear this one a lot in this area, and it explains why you see so many $200K homes built on $500 lots)
... I've got a buddy that will help me build it and it won't cost so much.
... I think I can build it for less than $50/sq ft.
... etc. etc. etc.

Seriously, look around the Boyd County market ... you see many houses being built ... wonder why???

With the declining area population combined with the depressed economy ... There is a HUGE housing surplus in this area ... take advantage of that potential windfall and negotiate a good deal on an existing home, then take those savings to get into a 15 year mortgage instead of 30 years and build some serious equity for your future.

Research all of the builders you know of, by checking quality of work, dependability and honesty. Hire the best you can find and pay him his price, then let him build your house while you shop for bargins on materials. You never save money by hiring a cut rate contractor!!;)

Both great advice, being a builder, I obviously would want to build you a home if you were in my area, but grouseguy is steering you in the right direction. Don't let emotions get in the process, although it is a good time to build because of the lower prices of lumber, ect. and the availabilty of subs, it is even a better time to buy, especially for first time homebuyers.

[KYHUNTER14]

Already own a home on about 17 acres. The land was the only reason I bought the place. The home is old and becoming run down. The land is in a really good location and I got a very good buy on it.

Maybe this could be considered an excuse for not buying another place, but it is what it is.

All things equal I agree that buying is a better way to go than building.

[lonesomepine]

If you do decide to build,make sure to borrow more than enough money to start with,If you make changes or upgrades it is nearly impossible to get more money through most lenders,with a construction loan they will generally hold 10% as a final draw that is after completion.
Try to research and work out everything you want ahead of time,the best thing to do is window shop a lot to get ideas.

Forgot to mention there was a builder from Ashland who came to Northern Ky and got over on a few people then went back,I won't say the name publicly,but will tell you if interested,I seriously doubt he is in business any longer though after what I saw as a Sub Contractor.